Investing.com -- Chipotle Mexican Grill (NYSE:CMG) shares rose in after-hours trading after it beat expectations for third-quarter earnings as same-store sales rose 5%.
The burrito chain reported adjusted earnings per share of $11.36 and revenue of $2.47 billion, up 11.3% from the same time last year. Analysts expected earnings of $10.55 a share on revenue of $2.47 billion.
Shares were up nearly 4% in pre-market trading. They are up 30% so far this year.
Same-store sales gained at the higher end of Chipotle’s previous forecast.
The company said it expects fourth quarter and full year 2023 same-restaurant sales growth in the mid to high-single-digit range.
For 2024, management is anticipating 285 to 315 new restaurant openings.
Barclays analysts raised the price target by about 1% to $1,885 per share to reflect "impressive upside."
"It was not surprising that investor expectations were elevated into earnings, with actual results likely in-line with those elevated expectations," the analysts said.
"Investors continue to prudently debate valuation, which is where we struggle, especially with investor concerns on the rise on high growth, high valuation names into slowing macro."
Similarly, Morgan Stanley analysts hiked the target to $2,070 per share.
"4Q sales outlook an upside surprise, though margins slightly lower. In absolute, an impressive growth story that continues to hold up. Cost outlook still mixed and perhaps not much in the way of upward estimate revisions here, though sales trends likely support stock," they wrote.
Additional reporting by Senad Karaahmetovic